Enrolled agents are federally authorized tax practitioners who prepare returns and represent taxpayers before the IRS. Solo EAs and small firms bill individuals and small businesses for return preparation, bookkeeping cleanup, IRS notice responses, audit representation, and year-round tax planning.
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Most enrolled agents price return preparation as a flat fee per return or per form, based on complexity. A 1040 with Schedule C, a rental schedule, or multi-state filings costs more than a W-2 only return. Representation work such as audits, collections, penalty abatement, and offers in compromise is usually billed hourly or as a flat fee with a defined scope, often paid in part up front. Tax planning and advisory sessions are billed hourly or as a package. Many EAs also offer monthly or quarterly retainers for small business clients that bundle bookkeeping review, estimated tax calculations, and unlimited short questions. Some states restrict contingent fees on original returns, and IRS Circular 230 limits contingent fees in certain cases, so most EAs avoid them and charge fixed or hourly fees. Fees should be stated in advance and tied to a written scope.
| Service | Priced | Typical range |
|---|---|---|
| Individual 1040 with standard deductions (W-2, interest) | flat fee | $150-350 |
| Individual 1040 with itemized deductions and Schedule C or rental | flat fee | $400-900 |
| Small business return (1120-S or 1065) with K-1s | flat fee | $900-2,500 |
| IRS notice response or penalty abatement request | flat fee | $250-750 |
| Audit or collections representation (Form 2848) | per hour | $150-350 |
| Tax planning or advisory session | per hour | $125-300 |
| Prior-year or delinquent return | per return | $300-1,000 |
| Small business tax retainer | per month | $150-600 |
Typical US ranges. Rates vary by region, experience, and job size.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| 2024 Form 1040 preparation with Schedule C, Schedule SE, and home office (Form 8829) | 1 flat fee | $650.00 | $650.00 |
| State resident return (additional state) | 1 return | $125.00 | $125.00 |
| Bookkeeping review and categorization of 12 months of business transactions | 3 hours | $95.00 | $285.00 |
| Response to IRS CP2000 notice, including review of 1099 data and written response | 1 flat fee | $350.00 | $350.00 |
| Tax planning call: 2025 estimated payments and SEP-IRA contribution | 1 hours | $175.00 | $175.00 |
| Total | $1,585.00 | ||
Notes: Payment due within 15 days of invoice date. A $300 deposit was received at engagement and is not reflected above; it will be applied to the final balance. Returns are e-filed after payment is received in full. Late balances over 30 days are subject to a 1.5% monthly charge. Services are limited to those listed in the engagement letter.
Clients often use you across several years and entities, and each line needs to match a specific filing.
Listing Schedule C, Schedule E, Form 8829, or state returns shows what the price covers and justifies add-ons.
Ties the bill to the agreed services and protects you if a client claims something was included that was not.
Representation and planning time is scrutinized most, so dated entries like 'Reviewed IRS transcript' prevent disputes.
Shows the correct balance due and gives a clear record of funds taken in advance.
Identifies exactly which matter you billed for, such as a CP2000, CP14, or audit letter.
Clients may need these for their records, and paid preparers must have a PTIN on returns they prepare for compensation.
Many EAs collect a deposit or the full fee for simple returns before filing, since it is hard to collect after a client receives a refund. For larger projects, a typical split is 25 to 50 percent at engagement and the balance on delivery or before e-filing. Representation work is often billed with an upfront retainer that is drawn down by hourly time. Due dates are commonly due on receipt to net 15. Late fees of 1 to 1.5 percent per month are common if stated in the engagement letter. Accepted payment methods usually include ACH, card, and check. Some preparers offer refund-based payment options, though these involve additional rules and should be reviewed carefully.
Define the tax years, forms, and what is excluded, such as audit representation or amended returns. Then make each invoice line refer back to it.
Do not e-file until the fee is paid or a deposit covers it. Note that you may not withhold a client's own records, so release original documents even if a balance is owed.
If a client later gets a notice or audit, treat it as new work with a new scope and retainer instead of absorbing it into the original return fee.
When clients arrive with shoeboxes of receipts or unreconciled books, add a line for bookkeeping time instead of folding it into a return fee that assumed clean records.
Planning calls and notice responses are easy to forget in busy months. Bill them within a week of completion while the details are fresh.
Per return is standard for preparation because clients want a known price. Use hourly rates for representation, planning, and cleanup where the amount of work is uncertain. Many EAs use a flat fee with a clause for extra time if records are incomplete.
Generally no for original returns. Circular 230 limits contingent fees to a few situations, such as IRS examinations or amended returns claiming a refund, and some states add their own rules. Check the current rules before using one and stick to fixed or hourly fees if unsure.
It depends on the state. A few states tax certain professional or tax preparation services, while most do not. Check with your state department of revenue.
No. Under Circular 230, practitioners must return client records on request, even if fees are unpaid. You can still hold your own work product, such as an unfiled return, until payment, subject to your state's rules.
State late fee terms in your engagement letter, send reminders at 15 and 30 days, and consider requiring payment before filing for clients with a history of late payment.
Send a Enrolled Agent estimate for approval, then turn it into an invoice when the work is done.
Enrolled Agent estimate template